Irish Daily Star Editor Michael O'Kane has resigned in the wake of his decision to publish topless photos of Kate

The editor of the Irish Daily Star has resigned in the wake of the controversial publication of topless photographs of the Duchess of Cambridge.

Michael O’Kane had been suspended from his role in September while an internal investigation was carried out into the tabloid’s decision to run pictures of Kate and Prince William sunbathing on a private holiday in France.

In a statement yesterday the paper said: ‘As a result of the publication on September 15, issues arose with the shareholders of Independent Star Limited.

Having considered those issues, it is Mr O’Kane’s decision to resign as editor, effective immediately.’

Media tycoon Richard Desmond, whose Northern and Shell group co-owns the newspaper with the Irish-based Independent News and Media, had threatened to shut the Dublin operation down.

However, sources said today that shareholders were working to secure the future of the newspaper, which employs about 120 people.

It is understood there has been no change to the status of the 25-year-old joint venture on the back of Mr O'Kane's resignation.

One source said there would be ‘further changes’, which have still to be agreed and would be announced in the future. Another said there was no momentum behind calls to close the newspaper.

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Controversial: The front page of the Irish Daily Star printed the pictures, which put the future of the paper in jeopardy

In September, Mr Desmond said he was
very angry at the decision to publish the photographs and was ‘taking
immediate steps to close down the joint venture’.

In a statement today, the Irish Daily
Star said: ‘As a result of the publication on 15 September 2012, issues
arose with the shareholders of Independent Star Limited.